Kingsley Williams – Chief Investment Officer at Satrix
Satrix, South Africa’s leading provider of index-tracking products, will add another unique offering for investors by listing the Satrix MSCI ACWI Feeder Exchange Traded Fund (ETF) on the Johannesburg Stock Exchange (JSE) during the first quarter of 2024, upon approval from the JSE. The ETF will track the performance of the MSCI All Country World Index (ACWI), which offers investors access to one of the most diversified global equity indices available, offering exposure to over 2 900 companies from developed and emerging markets within a single fund.
It will boast a competitive Total Expense Ratio (TER) of 0.35%, making it an attractive option for individual and institutional investors.
Kingsley Williams, Chief Investment Officer at Satrix*, says that unlike the MSCI World Index which only tracks developed markets, this ETF also includes emerging markets. “The mandate of the ETF will be to track the value of the MSCI All Country World Index (ACWI) in ZAR, allowing long-term investors to conveniently diversify their portfolios by tracking the widely used benchmark for global equities with a single trade. In addition to broad developed market exposure, it includes exposure to large and potentially faster-growing countries like China and India.”
He said the fund offers exposure to 23 developed markets and 24 emerging markets giving investors the opportunity to spread their currency risk across different countries, regions, and sectors.
The Satrix MSCI ACWI ETF will track an index that is a traditional market cap index used as a benchmark for global equity funds, providing a core building block for use within an investor’s overall portfolio.
The South African Case for the Satrix MSCI ACWI ETF
The Satrix MSCI ACWI ETF provides an efficient, low-cost investment vehicle that tracks the global equity market’s movements, offering South African investors a highly diversified rand hedge solution through a single trade.
The ETF combines other well-known major indices, namely the MSCI World Index and the MSCI Emerging Markets Index, which include the liquid and widely covered large- and mid-cap stocks within their respective countries.
“The Satrix MSCI ACWI ETF presents an efficient and low-cost tool that captures thousands of stocks across many jurisdictions, diversifying investors’ portfolios. The ETF has been designed for longevity and caters to investors with a long-term investment horizon who are not averse to short-term volatility,” adds Williams.
About the Satrix MSCI ACWI ETF
The Satrix MSCI ACWI ETF comprises 23 developed markets, making up 89% of the index and 24 emerging markets, making up the remaining 11%. The index is well diversified across sectors, holding:
- 22% Info Tech stocks
- 15% Financials
- 12% Health Care
- 9% in Resources and Energy stocks
- and the rest in Industrials.
Just over 60% of the index is US exposure, followed by 12% in Europe excluding the UK, 11% in emerging markets and 14% in other developed markets. Top companies in the index include Apple Inc., Microsoft, Amazon, Meta Platforms A, Alphabet and Tesla – market-leading giants in their respective industries.
“The Satrix MSCI ACWI ETF bridges the gap for South African investors, offering them a gateway to a world of investment opportunities. This ETF is more than just a financial instrument; it’s a tool for investors to diversify globally, manage risk, and efficiently gain exposure to both developed and emerging market equities,” concludes Williams.
Visit www.satrix.co.za for more information on the Satrix MSCI ACWI ETF.
*Satrix is a division of Sanlam Investment Management.